How To Apply SBI E Mudra Loan In 2022

By | September 16, 2022

How To Apply SBI E Mudra Loan In 2022

The best of E Mudra Loan 2022

  • Interest Rate – Competitive rates linked to MCLR*
  • Purpose – Business purpose, capacity expansion, modernization
  • Loan amount – up to Rs. 10 lakhs
  • Loan type – term loan and working capital loan
  • Target group – business enterprises in the sector of production, trading and services, including associated agricultural activities
  • Processing Fees and Charges – For Tarun: 0.50% of approved loan amount + taxes
  • Prepayment Fees – 3 – 5 years (moratorium up to 6 months) depending on activity/income generation
  • Margin – up to Rs. 50,000 Nil and from Rs. 50,001 to Rs. 10 lakhs is 10%

SBI e-Mudra Loan Application Procedure

Existing customers sharing relationship with SBI in the form of Savings Account or Current Account (Individual) can apply for e-MUDRA loan up to Rs. 1,00,000 by visiting the SBI e-mudra portal and following the steps below:

  1. Select Pradhan Mantri Mudra Yojana Application Form from the drop down menu.
  2. Visit SBI official website and click on “Continue”.
  3. Provide required details like applicant’s Aadhar card for e-KYC purpose through UIDAI as e-KYC and e-sign must be completed through OTP verification for loan processing and disbursement.
  4. Once the SBI formalities and the loan process are completed, the applicant will receive an SMS telling them to start the next process by visiting the e-MUDRA portal again.
  5. This process needs to be completed within 30 days of receiving the loan sanction SMS.

SBI e-MUDRA Loan Features

  • The maximum loan amount offered is Rs. 1 lakh
  • The maximum repayment period is up to 5 years
  • Instant availability of loan Rs. 50,000 at the discretion of the bank
  • For loan amount above Rs. 50,000, the applicant has to visit the nearest SBI bank branch and settle the loan

Eligibility criteria

  • Must have maintained current or savings account with SBI for at least 6 months

Documents Required for SBI e-Mudra Loan

To apply for a Mudra loan from SBI, you need to submit the following documents along with the loan application form:

  • Duly completed application form with passport size photos
  • Applicant’s KYC Documents: Passport, Voter ID, Aadhar Card, Driving License, PAN Card
  • Savings/current account number and branch details
  • UIDAI- Aadhar Number (should be updated in account number)
  • Community Details (General / SC / ST / OBC / Minority)
  • More information for uploading as GSTN and UDYOG Aadhar
  • Business document and incorporation and business registration
  • Any other document required by SBI

Also Read – How to Apply for HDFC Personal Loan in 2022

SBI Mudra Loan Eligibility Criteria

  • The applicant must be engaged in a non-agricultural income-generating activity, either in manufacturing or in the service sector
  • The applicant should have lived in the same place for at least 2 years

Apart from finance, MUDRA also offers a credit guarantee for Mudra loans, acts as a technology enabler and provides development and promotional support. Financial support is offered in four ways:

  • Through Micro Credit Scheme (MCS) for loans up to Rs. 1 lakh where the funding comes through microfinance institutions
  • Application of Refinancing Scheme for Commercial Banks, Regional Rural Banks (RRBs) and Scheduled Cooperative Banks (SCBs)
  • Through the Women’s Program
  • Securitization of the loan portfolio

The bank provides SBI Mudra loan for working capital needs and as a term loan to meet various business needs. The maximum loan amount offered by SBI under Mudra Yojana is Rs. 10 lakhs. Businesses engaged in manufacturing or providing services are eligible for the CGTMSE guarantee, although the same is not provided to businesses engaged in retail. The Credit Guarantee Fund for Micro and Small Enterprises (CGTMSE) guarantees eligible applicants for loans granted under the Mudra program up to a certain amount.

Frequently asked questions

Who can apply for SBI Mudra Loan?

Ans. Business enterprises engaged in manufacturing, trading and services, including allied agricultural activities, can apply for Mudra loan from SBI.

How can I get a loan of Rs. 50,000 or more from SBI?

Ans. You can either apply for a direct loan from SBI or you can avail a Mudra/e-Mudra loan from SBI and avail a loan of Rs. 50,000 or more.

What is the repayment term of SBI Mudra loan?

Ans. Working capital funds are repayable on demand, while term loans have a maturity of 3 to 5 years, including a moratorium of up to 6 months.

What is a Mudra card?

Ans. Mudra Card is a debit card that can be used to withdraw money in installments from the total approved loan. It is used as an ATM debit card to withdraw funds for business purchases.

Is there any subsidy under the Mudra loan scheme?

Ans. No, there is no subsidy under the Mudra loan scheme.

How long does it take for banks to process a Mudra loan application?

Ans. Mudra loan processing time is approximately 7-10 working days for approval and disbursement from the date of submission of the loan application form. However, it varies from case to case and depends on the amount of the loan, the profile of the applicant and the nature of the business.

Is overdraft up to Rs 5000 covered under Mudra scheme?

Ans. Yes, an overdraft of Rs. 5,000 approved under Pradhan Mantri Jan Dhan Yojana (PMJDY) is covered by Mudra loan.

How can I get/download SBI Mudra loan application form online?

Ans. To apply for SBI Mudra loan, applicant must download the loan application form in PDF format from the official website or click here. The downloaded form must be filled in properly and all the required documents must be picked up and handed over to the nearest bank branch.

Who should I complain to if the bank manager rejects my Mudra loan application form?

Ans. If you believe that your loan application has been rejected for false reasons, you can complain to a superior banking authority if your loan application is rejected. However, it is at the sole discretion of the relevant bank whether to accept or reject Mudra loan applications based on the applicant’s creditworthiness, repayment history or financial stability.

Also Read What is MUDRA Bank Scheme

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